Non-transaction based revenues were 73% of our total fourth quarter 2013 net revenues, and increased 27% from the prior year quarter.

Both recent acquisitions of eSpeed and the IR, PR, and Multimedia businesses of Thomson Reuters are contributing earnings accretion and progress continues on delivering the synergy potential of both transactions.

The company paid down $98 million in debt in the period, and the deleveraging plan is on schedule to return NASDAQ OMX to its long-term leverage target by the end of the second quarter of 2014.

"I am encouraged by the performance of our business and further validation of the strategic approach we've taken to more broadly service the financial community while effectively balancing our mix of revenue and earnings streams," said Bob Greifeld, CEO, NASDAQ OMX. "With nearly three quarters of our revenue derived from recurring sources, derivatives and fixed income contributing more than 60 percent of our transaction revenues, and nearly all of our revenues coming from products where we enjoy #1 or #2 competitive positions, our business model puts this company on very strong footing."

Mr. Greifeld continued, "What is especially satisfying about this quarter is our record results were delivered while we continue to invest heavily in our future, through promising internal initiatives and initial investments into our acquired businesses. As we look at 2014, we are optimistic that our business model is well positioned for any potential improvement to the global business environment while the diversity of offerings provides the opportunity to more broadly service our customers across the investment community."

On a non-GAAP basis, fourth quarter 2013 operating expenses were $313 million, up 33% as compared to the prior year quarter, primarily due to the inclusion of expenses associated with the acquisitions of the Thomson Reuters IR, PR and Multimedia businesses and the eSpeed electronic fixed income platform. On an organic basis (constant currency and excluding acquisitions), fourth quarter non-GAAP operating expenses were up 6%. GAAP operating expenses were $282 million in the fourth quarter of 2013, compared to $247 million in the prior year quarter.

Fourth quarter 2013 non-GAAP diluted earnings per share was $0.69, compared to $0.64 in the prior year quarter. Please refer to our reconciliation of GAAP to non-GAAP net income, diluted earnings per share, operating income, net exchange revenues and operating expenses included in the attached schedules.

On a GAAP basis, net income attributable to NASDAQ OMX for the fourth quarter of 2013 was $141 million, or $0.81 per diluted share, compared with $85 million, or $0.50 per diluted share, in the prior year quarter.

"2013 finished with healthy momentum in terms of both organic growth in the vast majority of our business units, and our progress integrating two transformative acquisitions," said Lee Shavel, EVP and CFO, NASDAQ OMX. "As we begin 2014, we will be working to continue to realize the growth and synergy opportunities each acquisition brings for shareholders."

Mr. Shavel continued, "On the capital front, we continue our strong pace of deleveraging, paying down $98 million in debt, reducing the gross debt/EBITDA leverage ratio. We remain on track to return to our longer-term leverage target in the mid-2x gross debt to EBITDA range by the end of the second quarter of 2014."

At December 31, 2013, the company had cash and cash equivalents of $425 million and total debt of $2,634 million, resulting in net debt of $2,209 million. This compares to net debt of $1,479 million at December 31, 2012.

BUSINESS HIGHLIGHTS

Market Services(39% of total net revenues) - Net revenues were $204 million in the fourth quarter of 2013, up $17 million when compared to $187 million in the fourth quarter of 2012.

Derivatives (14% of total net revenues) – Total net derivative trading and clearing revenues were $72 million in the fourth quarter of 2013, down $3 million compared to the fourth quarter of 2012. Net U.S. derivative trading and clearing revenues declined $3 million year-over-year due to modestly lower market share and capture. European derivative trading and clearing revenues were unchanged.

Cash Equities (10% of total net revenues) – Total net cash equity trading revenues were $51 million in the fourth quarter of 2013, up $4 million compared to the fourth quarter of 2012. Net U.S. cash equity trading revenues were unchanged, on relatively stable industry volumes, market share, and capture, while European cash equity trading rose $4 million year-over-year, on higher market volumes and capture. Consolidated U.S. cash equity market share was the highest since the third quarter of 2012.

Fixed Income (3% of total net revenues) – Total net fixed income trading revenues associated with eSpeed were $17 million.

Access and Broker Services (12% of total net revenues) – Access and broker services revenues totaled $64 million in the fourth quarter of 2013, down $1 million compared to the fourth quarter of 2012. Co-location and ports saw modestly lower demand in the fourth quarter of 2013 compared to the fourth quarter of 2012, partially offset by the addition of eSpeed hosting revenues, and revenue growth in newer products, such as microwave and other new low-latency connectivity methods.

Information Services (21% of total net revenues) – Revenues were $109 million in the fourth quarter of 2013, up $10 million from the fourth quarter of 2012.

Market Data (17% of total net revenues) – Total market data revenues were $89 million in the fourth quarter of 2013, up $6 million compared to the fourth quarter of 2012, primarily due to the inclusion of market data revenues associated with eSpeed, growth in products such as NASDAQ Basic, and the impact of select pricing initiatives. This increase was partially offset by a $2 million decrease in audit collections compared to the prior year period.

Index Licensing and Services (4% of total net revenues) – Index licensing and services revenues were $20 million in the fourth quarter of 2013, up $4 million from the fourth quarter of 2012. The revenue growth was a function of materially higher assets under management and number of licensed exchange traded products, including the impact of the acquisition of the index business of Mergent, Inc.

Technology Solutions (29% of total net revenues) - Revenues were $149 million in the fourth quarter of 2013, up $70 million from the fourth quarter of 2012.

Corporate Solutions (16% of total net revenues) – Corporate solutions revenues were $83 million in the fourth quarter of 2013, up $58 million from the fourth quarter of 2012. Corporate solutions revenue growth was primarily due to the inclusion of the Thomson Reuters IR, PR, and Multimedia businesses, as well as organic growth, in particular the continued growth of Directors Desk.

Market Technology (13% of total net revenues) – Market technology revenues were $66 million in the fourth quarter of 2013, up $12 million from the fourth quarter of 2012. The revenue increase is primarily due to an increase in software, license and support revenues as well as an increase in software-as-a-service revenues due to organic growth, in particular at BWise and SMARTS Broker. Also in the fourth quarter of 2013, we recognized higher revenues at BWise due to the recognition of previously deferred license revenues.

Listing Services (11% of total net revenues) – Revenues were $58 million in the fourth quarter of 2013, up $1 million compared to the fourth quarter of 2012. U.S. listing revenues were unchanged. European listing revenues rose by $1 million, due to higher market capitalization and a favorable change in exchange rates.

NON-GAAP OPERATING EXPENSE AND EFFECTIVE TAX RATE GUIDANCE – The company has initiated 2014 non-GAAP operating expense guidance of $1,250-$1,285 million, including $1,215-$1,235 million of core expenses, and $35-$50 million of GIFT new initiative expenses. The company expects an effective tax rate in the range of 33%-35% in 2014.

CORPORATE HIGHLIGHTS

Market Technology finishes record year for new order intake. In 2013, Market Technology had its best-ever year for new order intake, with $322 million in total contract value, including a record $138 million in the fourth quarter of 2013. The backlog ended the year at a record $655 million.

U.S. Derivatives continues industry leadership. For the fourth consecutive year, NASDAQ OMX led all exchange operators in consolidated U.S. equity options market share, at 27.9% (18.2% for NASDAQ OMX PHLX, 8.7% for NASDAQ Options Market, and 1.0% for NASDAQ OMX BX), and set an all-time best annual mark.

Listing Services finishes 2013 with strong momentum. NASDAQ OMX led all U.S. exchanges with 126 IPOs in 2013, a 75% increase vs. the prior year, and welcomed a total of 239 new listings. NASDAQ OMX also won 31 listing venue switches, and hosted 57% of the top 100 best performing IPOs in 2013.

NASDAQ OMX clears first European buy-side client interest rate swap. On December 23rd, NASDAQ OMX Clearing announced its first buy-side client cleared interest rate swap (IRS). The start to buy-side clearing follows strong overall volume growth for NASDAQ OMX Clearing, with over 230 billion SEK in cleared IRS volumes to date, making NASDAQ OMX Clearing second in Europe in total cleared IRS volumes.

Global Indexes continues push into institutional channels. On November 6, 2013, the Oklahoma Firefighters Pension and Retirement System adopted the NASDAQ Global Index Family to serve as preferred benchmarks for its equity investments, requiring their 20 investment managers to reconsider their current benchmarks in preference to NASDAQ's offering.

About NASDAQ OMX Group

NASDAQ OMX (Nasdaq:NDAQ) is a leading provider of trading, exchange technology, information and public company services across six continents. Through its diverse portfolio of solutions, NASDAQ OMX enables customers to plan, optimize and execute their business vision with confidence, using proven technologies that provide transparency and insight for navigating today's global capital markets. As the creator of the world's first electronic stock market, its technology powers more than 80 marketplaces in 50 countries, and approximately 1 in 10 of the world's securities transactions. NASDAQ OMX is home to more than 3,300 listed companies with a market value of over $8 trillion and more than 10,000 corporate clients. To learn more, visit www.nasdaqomx.com.

Non-GAAP Information

In addition to disclosing results determined in accordance with GAAP, NASDAQ OMX also discloses certain non-GAAP and pro forma non-GAAP results of operations, including, but not limited to, net income attributable to NASDAQ OMX, diluted earnings per share, net exchange revenues, operating income, and operating expenses, that make certain adjustments or exclude certain charges and gains that are described in the reconciliation table of GAAP to non-GAAP and pro forma non-GAAP information provided at the end of this release. Management believes that this non-GAAP and pro forma non-GAAP information provides investors with additional information to assess NASDAQ OMX's operating performance by making certain adjustments or excluding costs or gains and assists investors in comparing our operating performance to prior periods. Management uses this non-GAAP and pro forma non-GAAP information, along with GAAP information, in evaluating its historical operating performance.

The non-GAAP information is not prepared in accordance with GAAP and may not be comparable to non-GAAP information used by other companies. The non-GAAP information should not be viewed as a substitute for, or superior to, other data prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. NASDAQ OMX cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections about our future financial results, growth, trading volumes, taxes and achievement of synergy targets, (ii) statements about the closing or implementation dates and benefits of certain strategic, technology, de-leveraging and capital return initiatives, (iii) statements about our integrations of our recent acquisitions and (iv) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond NASDAQ OMX's control. These factors include, but are not limited to, NASDAQ OMX's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in NASDAQ OMX's filings with the U.S. Securities and Exchange Commission, including its annual reports on Form 10-K and quarterly reports on Form 10-Q which are available on NASDAQ OMX's website at http://www.nasdaqomx.com and the SEC's website at www.sec.gov. NASDAQ OMX undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

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On the capital front, we continue our strong pace of deleveraging, paying down $98 million in debt, reducing the gross debt/EBITDA leverage ratio. We remain on track to return to our longer-term leverage target in the mid-2x gross debt to EBITDA range by the end of the second quarter of 2014.